The application of environmental analytical tools to fathom the performance of multi-level marketing company (the case of Oriflame Indonesia)

Jean Richard Jokhu, Lorenzo Ricsamana Sawatõ Telaumbanua

Abstract


Multi-Level Marketing business or also well-known as MLM is not a new thing and its already spread widely both in Indonesia and globally. The purpose of this research is to find out and analyze kind of company performance that have been implemented at Oriflame Indonesia as a successful Multi-Level Marketing Business. This is the first research that explore MLM business in qualitative research to deepen the understanding of MLM industry. In this research, the researcher will use qualitative methods. The data collection will use in-depth interviews as a primary data to collect the needs which will be useful for the Internal and External Environment Analysis. The participant in the interview will consist of the management of Oriflame Indonesia and the major stakeholders, such as the independent consultant and some of the loyal customers. The data analysis technique is a SWOT analysis which the factor got from the VRIO analysis and Porter’s 5 forces analysis and later get the analysis results for the company performance of Oriflame Indonesia. The result of this study indicate that internal and external factors affect the result of Oriflame’s performance as a company. Furthermore, the role of MLM work system also has an impact on the company’s growth.

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DOI: http://dx.doi.org/10.33021/icfbe.v3i1.3908

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